Companies should not neglect staff training because it can help them stand out from other organisations, it has been suggested.
Jo Causon, chief executive of the Institute of Customer Services (ICS) warned against cutting training budgets during the economic downturn.
She said it was particularly dangerous at the moment because competition between firms is tough as companies try to overcome the challenges the recession creates.
The expert said cutting the amount spent on training could have an adverse effect on the relationship between companies and customers, reports HR Magazine.
Figures from the ICS indicated that firms with a reputation for high levels of service have a higher net profit margin that rivals in the same sector.
"Investing in your people is a key differentiator in business today. An organisation that emphasises customer service, through training and development, goes a long way to retaining staff," Ms Causon commented.
She added that it would also help to motivate employees to try to satisfy customers.
A poll conducted by the ICS revealed that one in five firms have opted to increase their investment in customer service.
The same proportion stated that the problems with the economy have not had an effect on their business plans.
This comes after Peter Darnell of meeting venues provider Chartridge Conference Company said reducing the amount spent on staff training could put organisations at a "distinct disadvantage" in the long term.
He warned against cutting staff development budgets in an effort to avoid the trauma of letting staff go.
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